The Ministry of Planning recently announced that government spending on subsidies would decrease during the third quarter of fiscal year 2012/2013 to EGP 31.8bn, down 11.7% year on year from EGP 36bn.
The ministry stated in a report written on primary indicators for the country’s economic and social development plan for the third quarter that subsidies for supply goods from January to March totaled EGP 10bn, with petroleum subsidies reaching EGP 19.6bn. Subsidies for export promotion totaled EGP 0.8bn, while housing subsidies for low income citizens and soft loans totaled EGP 0.2bn, in addition to EGP 1.3bn in subsidies being paid to other sectors.
Subsidies for petroleum products totaled 62% of all subsidies for the third quarter, with an additional 31% going towards supply products.
The ministry added that government subsidy costs between July 2012 and March 2013 increased 15% year on year, reaching EGP 98.4bn. Subsidies for supply goods during this period totaled EGP 18.9bn, with petroleum subsidies reaching EGP 72.2bn, while subsidies for export promotion totaled EGP 2.3bn, housing subsidies for low income citizens and soft loans totaled EGP 0.96bn, and additional subsidies reached EGP 4.1bn.
The report further stated that the country’s total budget deficit for the third quarter would reach EGP 84bn, compared to EGP 176bn accumulated by the first nine months of the 2012-2013 fiscal year.
Public expenditures increased EGP 18bn during the third quarter of the 2012-2013 fiscal year at a rate of 15%, reaching EGP 139bn, compared to EGP 121bn accumulated after the first nine months of the current fiscal year. The total increase for the year reached 23%, nearing EGP 72bn and totaling EGP 382.5bn, compared to EGP 310.8bn accumulated during the period lasting from July 2011 to March 2012.
EGP 35bn in public expenditures were paid in government salaries and compensation given to workers, representing a 20% year on year increase. An additional EGP 38bn in expenditures were used to pay for support items, grants and social benefits, in addition to EGP 42bn spent on interest on public debt.
Translated from Al-Borsa